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Encore Wire (WIRE) Gains But Lags Market: What You Should Know

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In the latest trading session, Encore Wire (WIRE - Free Report) closed at $131.95, marking a +0.05% move from the previous day. The stock lagged the S&P 500's daily gain of 0.28%. Meanwhile, the Dow gained 0.11%, and the Nasdaq, a tech-heavy index, added 0.14%.

Heading into today, shares of the copper wire maker had gained 1.71% over the past month, outpacing the Industrial Products sector's loss of 0.36% and the S&P 500's gain of 0.12% in that time.

Wall Street will be looking for positivity from Encore Wire as it approaches its next earnings report date. On that day, Encore Wire is projected to report earnings of $2.42 per share, which would represent year-over-year growth of 106.84%.

Investors might also notice recent changes to analyst estimates for Encore Wire. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Encore Wire is currently a Zacks Rank #3 (Hold).

Looking at its valuation, Encore Wire is holding a Forward P/E ratio of 13.51. For comparison, its industry has an average Forward P/E of 12.88, which means Encore Wire is trading at a premium to the group.

The Wire and Cable Products industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 108, which puts it in the top 43% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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